Increases in Federal Exemptions and More!

The Judicial Conference increased certain dollar amount limitations found in the Bankruptcy Code effective for cases filed on or after April 1, 2013.  Debtors’ attorneys, don’t forget to update your software.  You may review all of the increases in the Federal Register here.  For example, the Chapter 13 debt limitation has been increased to $383,175.00 for noncontingent, liquidated, unsecured debt and increased to $1,149,525.00 for noncontingent, liquidated, secured debt.   Additionally, the federal residency exemption (homestead exemption) has been increased to $22,975.00, the federal motor vehicle exemption has been increased to $3,675.00, and the federal wildcard exemption has been increased to $1,225.00, plus up to $11,500.00 of unused residency exemption.   All other federal exemptions expressed in dollar amounts have also been increased.

In addition to the increased amounts in the Bankruptcy Code, the median incomes used in the means test have been adjusted for all states.   Mississippi’s median income for a single member household is now $36,240.00.  View all of the changes here.

Hey wait! Why would a Mississippi lawyer care about federal exemptions? Stay tuned.

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